The CE Shop » Sales License » CA Real Estate Finance Course » 2021

Question #1

What is the HECM program?

A. A home construction loan insured by the FHA

B. A grant from the FHA made to senior citizens

C. A direct loan from the FHA

D. A form of reverse mortgage insured by the FHA

Question #2

Which of the following is a true statement about FHA financing?

A. An FHA loan is usually more attractive to borrowers who have lower credit scores and down payments.

B. An FHA loan is best for borrowers who have large down payments.

C. FHA loans have more stringent requirements than conventional loans do.

D. FHA loans are available to all borrowers, regardless of credit history.

Question #3

Which of the following is a true statement about HUD’s Good Neighbor Program?

A. It requires only a $1,000 down payment.

B. It must be repaid within three years.

C. It's only available to investors who haven't financed a new home in the last two years.

D. It allows qualified individuals to buy a home at a 50% discount.

Question #4

Lydia put the minimum 3.5% down on her $210,000 home. She’ll have to pay an MIP. What type of loan does Lydia have?

A. FHA

B. Conventional

C. Standard

D. VA